It’s the best time to buy a house in Perth since 2013, according to the latest data from the Real Estate Institute of Western Australia.
The annual rate of house price growth required over 10 years to break even in the Buy-Rent Index had declined from 3.3 per cent to 3.1 per cent over the quarter, according to the REIWA Curtin Buy-Rent Index.
“Our analysis shows home buyers gaining an advantage, largely due to the low interest rates for home loans, home ownership costs continuing to be affordable and the median rents stabilising,” said J-Han Ho, a senior lecturer in the School of Economics and Finance at Curtin University. The index, made in partnership with Curtin University, shows whether it’s better to buy or rent in Perth based on past and current trends in the economic and property market climate.
“Perth’s annual house price growth rate has been 5.9% for the last 15 years. Based on the March 2018 quarter Index, house prices in Perth would only need to grow by more than 3.1% annually for buying to be considered more financially beneficial than renting,” REIWA president Hayden Groves said.
Groves attributed the improved buying conditions to a softening of the city’s median house prices by 1.9% during the March quarter. The 10-year average mortgage rate has also dropped to 6.43%.
“This is the most affordable buying environment we’ve seen in Perth for some time, so if you’ve been weighing up whether to buy, now is the time to take advantage of favourable market conditions,” Groves added.
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